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Reflex Eco Group – Ghana News

by Samuel Boadi (local journalist)

This Blog is sponsored by http://www.reflexecogroup.com


About 430 employees of AngloGold Ashanti’s Obuasi Mine are to be laid off this year as a result of the falling price of gold and the rising production costs owing to the high utility tariffs lately.

But another shocking information reaching CITY & BUSINESS GUIDE indicates that about 1,000 more workers could lose their jobs next year if the price of gold continues its downward trend.

A source at company, who spoke to this paper yesterday on anonymity, said AngloGold Ashanti’s Obuasi Mine has started processes to lay-off the workers.
The source did not indicate what would happen to the 1,000 workers penciled for retrenchment should the price of gold witness a rebound.

He said the repercussions of the global slump in the price of the commodity have increased the financial burden of the Obuasi Mine which has had to rely mainly on its parent company for support lately.

“The global development on the price of the commodity appears to be taking a toll on the operations of mining giants with some tremors already showing in Ghana.”

Newmont Ghana recently announced that it will disengage 300 of its employees by the end of the fourth quarter of this year.

Dave Schummer, Africa Operations Senior Vice President, indicated in a press statement that “the employee reduction reflects the company’s work to improve its increasing cost structure while creating value for all its stakeholders.”

The company, which said it was in discussions with the Ghana Miner Workers Union over the pay-out packages, added that “we face some very difficult decisions in streamlining our organization and are committed to treating people fairly throughout this process.”

Newmont Ghana employs about 2,500 people in the country.

Its Ahafo and Akyem projects constitute about 20 percent of its core assets worldwide.

Reports also indicate that tax hikes may prompt other companies to follow suit.